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Hello All, Please help me with this.

There are a few employees in my company working under third-party contracts in the production unit (on the shop floor). Are they eligible for sick leave and casual leave as per labor law? Please elaborate.

Regards,
Ritika Sinha


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Yes, they are eligible for SL and CL as per labor law. Total leaves in a year - 27 days: E.L. - 15, C.L. - 6, S.L. - 6. At the end of the year, a maximum of 15 E.L. can be encashed upon client request. Kindly confirm with the Contract Labour Agreement Act.

Regards,
Manoj Garg

From India, Bangalore
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RI
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Although a company hires labor through contractors, according to labor laws for contractual labor, the hiring company is the principal employer for all purposes. Therefore, we must ensure that it is clearly included in the agreement with the contractor that they provide all minimum wages, leave benefits, EPF, ESI, and other benefits. Consequently, the contractual labor is eligible for minimum leave benefits as applicable to regular employees.
From India, Bangalore
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